Lundbeck Jumps as Depression Drug Gets Praise: Copenhagen MoverChristian Wienberg
H. Lundbeck A/S rose the most in seven weeks in Copenhagen trading after JPMorgan Chase & Co. said the Nordic region’s second-largest drugmaker will revive growth with its experimental depression treatment Brintellix.
Lundbeck rose as much as 4.2 percent, the most since March 26, which made the stock today’s biggest winner in the OMX Copenhagen 20 index. The shares of the Copenhagen-based company gained 3.3 percent to 116.50 kroner at 11:24 a.m., with trading volume at 87 percent of the three-month daily average.
Lundbeck, which is losing revenue as patents on its bestselling anti-depressant Lexapro expire, said last month that Brintellix met primary and secondary endpoints in a test. The medicine will be as effective as existing antidepressants with fewer side effects, JPMorgan said. It started coverage of Lundbeck today with an overweight recommendation.
“We expect upcoming U.S. Brintellix approval to secure a return to strong growth from 2016 onwards,” James Gordon, an analyst with JPMorgan, said in a note. “We forecast peak Brintellix sales of $2.4 billion, driven by a cleaner tolerability profile.”